By Muskan Arora
The $89.6bn New York City Employees’ Retirement System, one
of the five pension funds in NYC retirement system has joined the Net-Zero
Asset Owner Alliance, confirmed Brad Lander, the city comptroller on November 14.
In 2022, the pension plan divested from fossil fuel reserve
owners in its public equity and corporate bond portfolios.
With a long-term intention to invest pro climate, it is yet
to be disclosed whether any other pension plan in the $285.4bn system has
joined the alliance.
“Climate risk is financial risk, and by joining the Net-Zero
Asset Owner Alliance, we reinforce our commitment to sustainable investments
that protect our retirees’ futures while pushing for a resilient, net-zero
economy,” said Lander, investment advisor and custodian for the five pension funds,
in a recent news release.
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NYCERS is the second largest pension fund in the city
retirement system, with the $109.2bn New Yok City Teachers’ Retirement System
being the largest. Each pension plan has a separate board of trustees.
Following
the decision to divest from fossil fuel in 2022, the system also vouched
excluding upstream fossil fuel investments including exploration and extraction
within its private market investments in 2023.
Further, the pension plan also adopted a net zero by 2040
goal and adopted a Net Zero Implementation Plan in early 2023.
This strategy includes disclosing emissions and setting
interim targets, engaging portfolio companies and asset managers to be net
zero-aligned by strengthening partnerships with other investors to make a
change.
The U.N. convened Net-Zero Asset Owner Alliance is a member
led initiative of 89 institutional investors with $8.9tr assets under
management.
“These investors are committed to aligning their
investment portfolios with the Paris Agreement’s goal of achieving net-zero
greenhouse gas emissions by 2050,” stated the press release.
